Question

Required information Use the following information for the Problems below. The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 lbs. @ $4 per Ib.) Direct labor (5 hrs. @ $14 per hr.) Factory overhead-Variable (5 hrs. @ $8 per hr.) Factory overhead-Fixed (5 hrs. @ $10 per hr.) Total standard cost $120.00 70.00 40.00 50.00 $280.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 42,000 48,000 210,000 240,000 90% 54,000 270,000 Production in units Standard direct labor hours Budgeted overhead Fixed factory overhead Variable factory overhead $2,400,000 $2,400,000 $2,400,000 $1,680,000 $1,920,000 $2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs. Direct materials (1,620,000 Ibs. @ $4 per Ib.) Direct labor (270,000 hrs. @ $14 per hr.) Factory overhead (270,000 hrs. @ $18 per hr.) Total standard cost $ 6,480,000 3,780,000 4,860,000 $15, 120,000 Actual costs incurred during the current quarter follow.

Answer 1

solution 0 computation of bro.honnan allah I @dissect materials cost variance material cost variance (Actual unitsy Actual (Ost)- (standard units X Standard . Cost) Particolars units Cost Total (3) Actua unit's at Actual Cost 16.15,000 4.10 662).500 Standard unit's od Standard (Ost 16,20,000 4 64.80,000 $1,41, 500 (unfavourable) o direct material Price variance troue www w the price variance - Actual Quantity (Actual Price A) standard Price) = 16,15,000 X(4.10-49 = $1,61,500 (unfavourable) I direct material Quantity variance on material Quantity variance tid att - Standard Price (Actual Quantity Standard Quantity) = 4( 16.15,000 (-) 16:20,000 ) = 20000 facourehu uu

minun computation of labour variances a direct labour cost variance = (actual hours Xactual cost) - (Standard hours X Standard Cost) = (265.000 hours x 13.45) - (9,70.000 XIV) = 36.43.450 (-) 37,80,000 = $1,36.250 Favourable We 6 Direct labour rate variance - Actual hours (Actual rate (-istandard rate) = 9.65,000 (13.756-)10) = $ 66,250 favou roablo ① Direct labour efficiency variance - Standard rate ( Actual hours (-) standard hours) = 1412,65,000 (-) 9.40,000) - 70,000 favourable .

& computation of overhead variance (1) Controllable variance to Particulans and Actual over hind Applied over head (54,000 X 50) Controllable variance Amount() 93,50,000 97,00.000 3,50.000 favourable Fixed overhead volume variance Particulars Amount ($) Bud gosted fixed overhead fixed over head cost Applied (42,000 X 50) Qu.00.000 21.000.000 Filed over head volume variance 300.000 unfavourable
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